What's the Latest Development?
This is the story of a business that a decade ago was nearly bankrupt. To cut costs, the model railway company Hornby outsourced to China and was pleasantly surprised to find production there not only cheaper, but of superb quality. Seizing the opportunity, middle managers started spending the savings on adding quality, particularly lots of extra detail like windscreen wipers on a locomotive. Sales increased substantially and they found it was not fathers buying trains for their children, but for themselves. A new market had inadvertently been found.
What's the Big Idea?